VITeff Veille

India

Wine production

• 4.8 million litres in 2005.
• 37 wineries. Their number is increasing by around 10 per year.
• 3 wineries account for 70 % of the production and enjoy collaborations with multinationals operating in the wine sector such as Piper Heidsieck for Indage and Veuve Clicquot for Grover.
• 34 small wineries produce the remaining 30 %.
• The majority of the lots planted in Thompson seedless.
• The State of Maharashtra is the most important in the matter of wine production (70 % of the area, i.e. around 40,000 ha). This State produces 85 % of Indian wine.
  
  Wine consumption
  
• 5 to 6 million litres of wine per year, registering a 20 % rise each year.
• 80 % of the market supplied by local production and 20 % by imports.
• Only a section of the elite has proper knowledge on wine which has become a sign of social recognition, a fashionable product.
  
  Wine imports
  
• Between 15 to 20 % of its consumption. French wines represent 40 to 60 % in value and in volume.
  
  The sparkling wine market
  
• Production in full effervescence. The wineries are increasing their production capacity and are expanding their premises for starting or developing the production of sparkling wines.
• Forecast of 2.7 million litres of sparkling wine production by 2010.
• The INDAGE Group (State of Maharashtra) produces 500,000 litres of sparkling wine, according to the traditional method, with Thompson and Chenin Blanc varieties. The range is made up of Marquise de Pompadour, Château Indage Joie and Château Indage Ivy Brut. The groups’s production capacity is constantly on the rise.
• Sula Vineyards (State of Maharashtra) produces around 225,000 litres of sparkling wine, according to the traditional method. Brands: Sula Brut and Sula Seco. Plans are afoot for a new 750,000 litre cellar (construction is under way). The volume of sparkling wines should be increasing by 30 % per year.
• Sankalp Winery Ltd (State of Maharashtra). Produces around 10,000 litres of sparkling wine, according to the traditional method. Brand: Vinsura Brut. Plans are afoot for a new building and new equipment for increasing the production capacity (including 80,000 litres of sparkling wine for 2006).
  
  Prospects for the Indian market
  
• Development foreseeable thanks to the rise of the GDP. Emerging market for wines with 30 % growth per year.
• The Indian wine market is a veritable opportunity for French producers in spite of the restrictions due to the regulations and the structure of the country.
• Priority being given to the development of local production. The Indian Government is encouraging industrialists to invest in the booming wine production market (20 to 30 % growth rate per year).
• Certain States (among which Maharashtra has 85 % of the Indian vineyards) are launching help programmes and special measures (decrease in tax, administrative facilities, granting of operating permits, encouragement to diversify the destination of the production).
• Plans are afoot for the creation of a National Bureau for Wine for encouraging consumption and the entry of foreign investors.
• Plans for wine parks for encouraging wine production.
• There are however certain restrictions for the development of imports of wine and wine producing equipment: 3 States forbid consumption of wine + tax burden. Custom duties on wine vary on a range extending from 125 to 235 %
• It may be noted that direct advertising is banned in India. Only indirect promotions or Point-of-Purchase advertising are authorized. The organisation of wine sampling events, sponsoring and press relations enable the market players to promote their products.
• The demand mainly pertains to the supply of vine plants, equipments for still and sparkling wines, bottling lines, vats, barrels and chipwood.

Languages for correspondence: English and Hindi

Source: Economic Mission New Delhi - February 06